PANews, October 1 – According to CoinDesk, after U.S. August PCE inflation data came in below expectations, Bitcoin briefly broke above $85,000 on Wednesday, reaching a high of $85,500. However, as U.S. Treasury yields remained elevated, market risk appetite cooled and the gains were subsequently given back.
As of Thursday's Asian session, Bitcoin was trading around $83,700, up 0.4% over the past 24 hours. Among other crypto assets, HYPE rose about 3% to around $89, DOGE gained nearly 2% to around $0.1; ETH, BNB, TRX and ZEC rose less than 1%, XRP was flat near $1.50, and SOL fell nearly 1% to around $119.
Dan Khus, chief analyst at LVRG Research, said the August PCE data showed inflation cooling faster than expected, reducing market expectations for another Fed rate hike in October and raising the probability that December could become the next policy adjustment point. The market viewed this signal as favorable for risk assets.
However, U.S. Treasury yields remain the main obstacle to Bitcoin's further gains. The U.S. 10-year Treasury yield held around 5.28%, near its previous high, while the 30-year yield briefly rose to its highest level since 2002. Analysts said that with the 10-year Treasury yield still near 5.3%, improved inflation data alone is not enough to support Bitcoin holding firmly above $85,000. A sustained decline in yields could become an important driver of the next market move.